Analysts at TD Securities offer a brief preview of the Australian quarterly consumer inflation data, due for release during the Asian session on Wednesday.

Key Quotes:

“We expect outsized headline/ underlying CPI prints vs consensus. The magnitude of the increases for the main drivers of Australia CPI inflation are: 1) Housing 3.2% q/q; 2) Food 2.25% q/q; 3) Transport 2.3% q/q; 4) Household Services 1.65% q/q & 5) Recreation 1.2% q/q. Our headline forecast implies the peak is likely to exceed the RBA's 7% year-end target warranting at least a 50bps Aug policy rate hike. We see upside risks to our forecast.”